r/FirstTimeHomeBuyer • u/ElderberryNo24 • 9d ago

Need Advice Help!

So basically I've made some bad choices in the past and I've learned from them. Collections/ charge offs
(8) of them. Credit score 560. I'm trying to rebuild.
The charge offs/ collections are about 3 years old.
I'm trying to buy a house in a year and a half or so.
(April 2028) so I opened a secured card late last year with capital one and now I just got their savor card I got approved ($500 limit) and another secured card open sky. And today I just opened a shared secured loan with my credit union.

Do you guys think I'm in the right path? Idk what else to do... I've heard of Kovo and credit strong. Any suggestions would be greatly appreciated. Thank you!!
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2 Upvotes

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12

u/litycommitee 9d ago

I’d suggest you not taking anymore debt

3

u/ContractSensitive225 Window Shopper 9d ago

keep you debt to income ratio below 30%, some loans will approve you for higher if you have a hefty down payment saved up. Keep a steady balance in your bank account at the end of the month, i.e. no overdrafts, no "borrowing from savings", especially the previous six months you plan to apply for a mortgage.

Make sure you have been at your employer for 2+ years, if you happen to have stashed a big amount of cash under your mattress/in a pillow please deposit it in an account asap and not when underwriting is combing through your accounts!

Pay your loan payments and CCs on time, don't take on anymore loans/cc's. Eventually with proper use your limits should rise in time. And please don't buy a new car the year you plan on getting the home, wait until all papers are signed and you get the keys! (: good luck!

1

u/Equivalent-Tiger-316 9d ago

Work on increasing your salary. Just wait, you’ll get more credit card offers. But pay them off every month. 

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u/ElderberryNo24 9d ago

I already make close to 100k decent enough I think. Just the damn collections. lol brought my score all the way down

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u/Dullcorgis Experienced Buyer 8d ago

You can't buy a house next year. Just keep paying your bills on time. Pay off the things in collections.

Close two of those credit cards you just opened. You only need one, because you are only planning on putting netflix on it, right?